SWOT Analysis of Mazda

The SWOT Analysis of Mazda Motor Corporation will elaborate the Strength & Weakness of, and the Opportunities and Threats for Mazda Motors Corporation.

Mazda Motors, commonly known as Mazda, is a Japanese automotive company based in Fuchū, Aki District, Hiroshima, Prefecture, Japan. It was founded by a Japanese industrialist named Jujiro Matsuda.

Mazda became fifteenth largest automotive company in the whole world by 2011. It offers different types of cars including sporty, and environmental friendly cars. Mazda is now known as affordable and quality-performance vehicles.

Strength  [Internal Strategic Analysis]

  • Increase in Sales in recent time: Global sales increased. Sales in Mazda’s biggest market in North-America rose 4.4 percent to 94,000 vehicles in the end of 2014. The volume in European market also rose 13 percent to 53,000 units, and Sales in Japan increased 3.9 percent to 53,000 units of vehicles in the same time. In 2014, sales went up to 8%, twice of the industry average. It also met the best June in last 10 years.
  • Long time experience in automotive field: Mazda Motor Corporation has long experience in the specific field as it was founded in the year of 1920.
  • Worldwide Recognized Brand: Mazda is a very recognized brand with its different types of recognized products.
  • 15th Biggest Automaker: Mazda became 15th biggest automaker in the recent year.
  • Reputation in Customer service: Mazda has good reputation in serving its customers.

Weakness [Internal Strategic Analysis]

  • Weak Distribution Network: It possesses weak distribution channel in many countries. For example, in South-Asian countries like Bangladesh, Nepal, and Sri-Lanka it does not have strong distribution channels and networks.
  • High Price: Mazda offers its products with high price, and most of the people are middle class people in
    developing country.
  • Offered too many new models too quickly: as it offered too many models within a short period of time, some of them got less attention.

Opportunities [External Strategic Analysis]

  • Barriers of market entry: as the Automotive industry is very much competitive, the entrance of new company is very much difficult in this sector. So, there is a large opportunity for Mazda to conduct business in its favorable markets.
  • Emerging market in Developing countries: The demand of good looking cars is increasing in developing countries.
  • Better in distribution channel: Building better distribution channel can increase the sales revenue enormously.
  • Demand of Environment friendly cars: The demand is increasing. So, when it has a line of new products, it will
    increase the market share vastly.

Threats [External Strategic Analysis]

  • Decrease in Future sales: Company may face decrease in sales in near future because of aggressive competition. Managing Executive Officer of Mazda Motor Corporation Masahiro Moro said, “The business environment has changed a lot, and there is quite a bit of underselling, we thought it best to be conservative in adjusting our sales forecast. We didn’t want to force it and disrupt our operations.”
  • Increasing Tax Rate: tax rates in different nations went higher; as a result the profit is declining enormously.
  • Exchange Rate risk: Mazda has always been in exchange rate risk, though sometimes it benefited the company.

Recommendation

The analysis clarified the external and internal condition for Mazda Motor Corporation. Mazda offers good looking cars comparing conventional car makers. Also, it has a huge reputation in customer service. And the largest opportunities waiting for Mazda is the huge market of the environment friendly cars.


 

References

  •  http://www.autonews.com/article/20150204/OEM01/150209935/mazda-profits-dinged-by-lower-margin-models-higher-taxes
  • http://fortune.com/2014/07/30/mazda-sales-growth/
  • Mazda Official Website

faizul

Sheikh Faizul Haque, the founder of GotAbout, graduated from North South University, Bangladesh. His major was Finance and Accounting. Faizul has been writing in business blogs since 2013, also has a strong interest in Behavioral Finance, Risk Management, and Portfolio Management.